All Forum Posts by: Matt Hurley

@Scott Wolf thanks for the suggestion. Unfortunately I'm 28 lenders in, no dice. Rural area, I exhausted local options pretty quickly. Every lender so far is requiring a high income, high net worth individual on board to fund despite the low LTV I'm requesting (50% or under).

Hello all. Looking for referrals on non-qm lenders who service the state of MI. I'm returning back to real estate after 2 years of being a stay at home dad, won't qualify for conventional commercial loans. I have a home run 29 unit retail deal in my area I'm about to be under contract on, having trouble finding lenders for this unique scenario. Thanks!

Find another lender, every time I've qualified for a loan or refinanced I speak to minimum of 4 loan officers before moving forward (once purchase I spoke with 14). I don't have any specific lender recommendations, but I've negated PITI with 3 months proof several times in the past. I haven't applied for a loan in a year and a half though, so things may have changed. Bare minimum, try to convince them to remove the PITI from DTI (vs. include the whole income) which should help a lot.

I’m not familiar with MHP, but I’m an investor and work in the title industry. Land contracts are different state to state (from what I’ve seen) and you 100% need to go through a title company and use a real estate lawyer. A hand shake agreement with a handwritten contract is super risky and ownership could never properly transfer. Then you’re out years of payments. 

For any land contract deal, I would suggest that the signed deed is held in escrow by a 3rd party (like a lawyer or title company) and released once the terms of the LC are met. If he has a loan on the property, or if you’re allowed to keep taxes in his name (here in MI, we can’t do that. Taxes must transfer), then you should also put your payments into escrow or with a servicing company so there’s no way the owner takes your payments then bails on making his payment obligations. 

Don’t take my word on everything, talk to a real estate specific lawyer. Good luck on the rest of negotiations!

A trust is an entity, not a person. Which means you couldn’t get a conventional loan in the trust’s name, you would need some kind of commercial loan.

However, more commonly, people will transfer the property out of the trusts name and back into theirs. Get a conventional loan, then transfer it back into the trust. 

in the case you’re describing, the equivalent would be to purchase the house with a loan in the individuals name, then transfer into the trust. 
I work in the title industry, I see this strategy a lot. I’m however, not a CPA or a loan officer. It’s best to consult both before making a move like this.

Most hard money loans I’m aware of require their lien to be in first position. A commercial mortgage requires the same. 

People I’ve seen achieve what you’re describing do so with a partner. The partner provides the down payment, you’ve provided the deal and will need some sort of involvement after purchase (like managing the property). Profit split and exit strategy to be negotiated. 

House hacking = anything that reduces the cost of living in your principal residence.

• Living in one room and renting out another
• Buying a multi family and living in one unit while you rent out the others
• Living in a SFH and renting out your garage to someone
• Using your mother in law suite as an Airbnb
• Etc. 
  

If you’re asking if you can continue to live in your paid off house, then send your mail to the to the other property and “fake” house hack it: that’s not possible. You cannot have more than once principal residence at the same time. Gaining both advantages in taxes and in capital gains (if you’ve occupied the property for 2 of the last 5 years). 

As far as having two houses in your name, that’s not a problem. Generally speaking you can have up to 10 mortgages in your name, but only one of those can be your principal residence. 

For Ypsilanti, either Brian Bundensen or Keri Middaugh are fantastic choices. Both with Real Estate One, both investors themselves in addition to their Agent business. 

I house hack in Ypsilanti, bought a BRRRR here in 2019 I started occupying in 2020. I haven't seen very many cash flowing properties in this area since the covid bubble started inflating prices. There may be other markets that cash flow better than here currently does.

First, with those questions I would highly recommend she get in touch with a divorce lawyer and a loan officer if you have not already. They are familiar with these kinds of situations and can give you real data vs. making decisions off assumptions.

First recommendation, you need to analyze whether you are even allowed to rent out the house to multiple tenants. Many single family homes cannot be rented out by the room due to zoning restriction. Look on the forums here on Bigger Pockets, and start to educate yourself on what it would be like to be a landlord before you intentionally step into that position. If your mom is planning on renting a room out to help pay for her loan, you'll need this information too. 

Assuming that this is a 50/50 split of assets, then your dad has a claim to 50% of the equity in the property. He could get his money by having your mom refinance the house at $247k (equity split + remainder owed on the property), but she would need to be able to qualify for that loan. Don't move forward on the assumption that she can't qualify, she (and you) need to talk with a loan officer who can give you real data on which you can base your decisions. If she can't qualify for the loan by herself, then you could be on the loan with her and see if both of you together would qualify. Keep in mind, this now means you are also liable for the payments. So if she stops paying, and you can't afford the extra payments yourself, your credit score will tank and you'll have a foreclosure on your record. 

Best of luck to you and her on this journey :)